1 The
effective rates from 1950 through 1984 vary from the statutory rate of 0.0833 percent due
to assessment credits provided in those years. The statutory rate increased to 0.12
percent in 1990 and to a mininum of 0.15 percent in 1991. The effective rates in 1991 and
1992 vary because the FDIC exercised new authority to increase assessments above the
statutory rate when needed. Beginning in 1993, the effective rate is based on a
risk-related premium system under which institutions pay assessments in the range of 0.23
percent to 0.31 percent. In May 1995, the BIF reached the mandatory recapitalization level
of 1.25%. As a result, the assessment rate was reduced to 4.4 cents per $100 of insured
deposits and assessment premiums totaling $1.5 billion were refunded in September 1995.

2 These
expenses, which are presented as operating expenses in the Statements of Income and Fund
Balance, pertain to the FDIC in its corporate capacity only and do not include costs that
are charged to the failed bank receiverships that are managed by the FDIC. The
receivership expenses are presented as part of the "Receivables from Bank
Resolutions, net" line on the Statements of Financial Position. The narrative and
graph presented in the "Corporate Planning and Budget" section of this report
(next page) show the aggregate (corporate and receivership) expenditures of the FDIC.

3 Includes
$210 million for the cumulative effect of an accounting change for certain postretirement
benefits.